TORONTO, Sept. 23, 2011 /CNW/ -Canada Lithium Corp. (TSX: CLQ) (OTC: CLQMF) announced today preliminary
results from a further 10 holes of a recently completed 56-hole drill
program. Highlights from the program include 32.0 metres grading 1.29%
Li2O, 12.3 metres grading 1.51%, 10.7 metres at 1.26% and 8.1 metres at
1.11%. The program included both step-out and in-fill drilling at the
Company's Québec Lithium Project near Val d'Or, Québec.

"The latest drill results continue to demonstrate consistency in both
grade and width across the deposit. We are also pleased that the
Company is now transitioning from an exploration company into a mine
developer and producer," said President and CEO Peter Secker. (See
table below for details on the latest drill results.)

The environmental approval process is proceeding according to schedule.
In mid-September, the Company received environmental approval from
Québec's Ministère du Développement durable, de l'Environnement et des
Parcs (MDEEP) allowing it to commence construction of the lithium
carbonate process plant.

Preliminary site clearing has been ongoing at the Québec Lithium site
since mid-August. As the Company begins to ramp up development of the
project, additional orders have been placed for new equipment,
including a flotation circuit, crushing circuit and high-voltage
switching gear. Previously, the Company had announced the placing of
key orders for long-lead-time items, such as a ball mill, rod mill and
kiln and mine-haul trucks.

Several additional senior staff positions have been filled. The new
personnel include Stephane Turgeon as Financial Controller, Larry
McCann as Health and Safety Co-ordinator and David Alexander as Supply
Chain Superintendent. All of these senior personnel have worked within
the Abitibi mining industry for a number of years and will be based at
the Quebec Lithium site.

Canada Lithium Corp. is negotiating with several international and
domestic financial institutions with a view to agreeing to terms for
the debt financing required for the remainder of the capital
expenditures to build the mine and processing plant.

The Company also noted that the lithium market continues to strengthen,
as reflected in the mid-year public announcements by South American
producers Chemetall and FMC of lithium product price increases of
between 15% and 25%.

Drill results now are pending on the final 27 holes of the program.
Following receipt of all assays and Quality Assurance/Quality Control
(QA/QC) work, a new mineral resource model will be undertaken by AMC
Mining Consultants. It is anticipated that this updated mineral
resource model will be available in late October or early November. The
expected aim of the drill program is to increase the mineral resource
and to lower the strip ratio in the open pit. The preliminary assay
results for the latest 10 holes are as follows:

Mitch Lavery, P.Geo., is the Qualified Person for the Québec Lithium
Project in accordance with NI 43-101. Mr. Lavery has read and approved
the contents of this news release.

About Canada Lithium Corp.

The Company holds a 100% interest in the Québec Lithium Project near Val
d'Or, the geographical heart of the Québec mining industry. The Company
plans to build an open-pit mine and processing plant on-site with
capacity to produce approximately 20,000 tonnes of battery-grade
lithium carbonate. Metallurgical tests have produced battery-grade
lithium carbonate samples. The Company trades under the symbol CLQ on
the TSX and on the U.S. OTCQX under the symbol CLQMF.

Cautionary Statement Regarding Forward-Looking Information

This press release contains "forward-looking information" within the
meaning of applicable Canadian securities legislation. Generally,
forward-looking information can be identified by the use of
forward-looking terminology such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate", or
"believes", or variations of such words and phrases or statements that
certain actions, events or results "may", "could", "would", "might" or
"will be taken", "occur" or "be achieved".

Forward-looking information is based on reasonable assumptions that have
been made by the Corporation as at the date of such information and is
subject to known and unknown risks, uncertainties and other factors
that may cause the actual results, level of activity, performance or
achievements of the Corporation to be materially different from those
expressed or implied by such forward-looking information.

Although the Company has attempted to identify important factors that
could cause actual results to differ materially from those contained in
forward-looking information, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can be
no assurance that such information will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such information. Accordingly, readers should not place
undue reliance on forward-looking information. The Corporation does not
undertake to update any forward-looking information referenced herein,
except in accordance with applicable securities laws.